The Maldives’ tourism industry has sustained losses exceeding USD 500 million following a sharp decline in tourist arrivals, according to a joint statement issued by the Maldives Association of Travel Agents and Tour Operators (MATATO) and the National Hotels and Guesthouses Association of the Maldives (NHGAM).

The associations expressed deep concern over the mounting economic strain on the country’s primary revenue-generating sector.

Based on booking patterns and rising cancellations, the industry is estimated to have incurred losses surpassing USD 500 million since March 2026.

Official figures show a notable drop in arrivals during March and April, with the downward trend continuing into May.

The associations warned that if the situation persists, it could have serious repercussions on businesses, employment, foreign exchange earnings, and the broader national economy.

They emphasized that small and medium-sized enterprises (SMEs), including guesthouses, travel agencies, and tour operators, are bearing the brunt of the downturn.

Without immediate support, many of these businesses may be forced to shut down operations.

In response, MATATO and NHGAM have urged the government, relevant authorities, and financial institutions to implement urgent relief measures.

Their proposals include the introduction of targeted loan schemes and emergency financing for affected businesses, interest-free debt moratoriums, loan restructuring options, as well as tax deferrals and fee waivers.

The statement also called for swift action to address rising operational costs, particularly the high price of aviation fuel, which continues to place additional pressure on the industry.

In addition, ongoing tourism development projects are reportedly facing delays due to increasing and unregulated construction material costs.

While highlighting the industry’s past resilience in overcoming global challenges, the associations stressed that timely and decisive intervention is crucial to navigate the current crisis.

They reaffirmed their commitment to working closely with the government and financial institutions to protect businesses and safeguard livelihoods across the sector.